Principles of Marketing: Target Market, Product/Brand, Price, Place, Promotion

This article discusses the principles of marketing, including target market analysis, product/brand strategies, pricing strategies, distribution channels, and promotional tactics. It compares the marketing mix frameworks of Lucozade and Red Bull energy drinks.

Principles of
Marketing

Table of Contents
Introduction .....................................................................................................................................1
1. Target Market ..............................................................................................................................1
2. Product /Brand.............................................................................................................................2
3. Price.............................................................................................................................................3
4. Place ( Distribution) ....................................................................................................................4
5. Promotion ....................................................................................................................................4
Conclusion ......................................................................................................................................6
References .......................................................................................................................................7

Introduction
The definition of the marketing strategy suggested that it is one of the crucial role that
plays in the market on the basis of strongly analyse between products buying behaviour and
selling of the products. It also stated that marketing is one of the major aspect in business that
majorly focuses on the principles of marketing that are directly related to the buying behaviour
or consumers (HR and Aithal, 2020). The following discussion is firmly based on the target
market of two organisation, named as Lucozade and Red Bull energy drink. The report also
includes marketing mix framework for both the organisation and a comparative analysis between
them. Lucozade is one of the soft drink that manufactured by the Japanese company Suntory. It
Created as "Glucozade" in the United Kingdom in 1927 by a Newcastle pharmacist, William
Walker Hunte. In contrast to that, another organisation Red bull is one of the energy drink owned
by the Australian company Red Bull GmbH and it was created in 1987.
1. Target Market
A definition of the target market stated as the bunch of various consumer that has a single
aim to increase their efforts in the marketing and various resources. In the target market the
organisation wants to sell their products and services and work on the best of ability to increase
their sale and reputation in the market. Also, the organisation sets their target group on which
they majorly focus on selling their products and services and with whom they will directed the
marketing efforts. In relation with the targeting market of Lucozade, is a successful company in
the industry of energy and sports (Kurnianto, Pusaka and Ramdhani, 2019).
Researcher suggested that Lucozade mainly focuses on the mens that aged between 18 to
30 as the brand want to wider its target market beyond the performances in the sports. Suppose
taking an example, energy drinks of the Lucozade brand are not only made for the sports person
but also for the workers or labourers and this strategy of Lucozade seems out to be the best in the
market till now. In contrast to that, the energy drink of the Red Bull brand has the highest market
share amongst others in all over the world. It is because the target market of Red bull are the
young urban males or those who are extremely rich and aspire. Sports person, celebrities, urban
rich males are generally targeted consumers by the Red Bull organisation. Those consumers who
are extremely interested in various challenging activities and sports are greatly interested in this
energy drink. STP( Segmentation, Targeting and Positioning) is signified in the target market.
1

STP stands for Segmentation, Targeting and Positioning that implemented in the
organisation to analyse the target market or target audience. This segmentation of the market is a
process in which various buyers are divided in the market and profiled according the the
variables which are related with the characteristics and different tendencies. The STP suggest
three essential factors or components in marketing which are later executed by the marketing
mix. The main agenda or an objective of STP process is to majorly focuses on the target
audience and identify the valuable segments and then developing the marketing mix for those
segments.
In terms of both the organisation Lucozade and Red Bull, uses the STP process to analyse
their target audience. The three steps of this framework are mentioned below
 An attractive content is required before processing: It states that there is a need to
properly organise and framed an attractive content which include lavishing outlet,
appropriate functions that attract the consumers.
 Publicity of the brand: It seems out to be the major point which states that there is
a need to to publicity of the brand so that there is a possibility of large size of the
consumers. Publicity also includes awareness and recognize of the brand,
organisation and different services.
 Creating the event and the required sponsorship: It includes organising the event
with brand ambassadors like sports person, celebrities. It helps in promoting the
products at higher level to reflects a visibility of the brand and their products.
Also to include sponsors in increasing the value of the brand.
2. Product /Brand
A product or a brand is one of the object or service which are made available for the use
of consumers. There is a need to satisfy the desire and satisfaction of consumers that helps to
increase the product and brand. The product refers to various features, packaging and labelling.
In relation with Lucozade energy drink, the design and colour of the products is especially made
to attract the customers. It helps in satisfying the market needs. The products which are designed
by the Lucozade company are applicable in various forms and it enables the consumers to
provide the desired benefits among a wide range of consumers. One of the major thing that is
being concentrated by the Lucozade is the usage of best ingredients (KULAK and et. al., 2019).
2

The main agenda of Lucozade is to provide energy drinks to those which are benefited
consumers at the time of exercises, tables, sport activities and many others. It ensures that no
needs should be left unsatisfied and and it helps in consolidating the products positioning in the
market. They always make sure to provide products which are in good quality, high ultra based
and good flavoured. Some of the products of Lucozade includes energy bars, tablets, flavour
drinks and many others. In relation with Red Bull always focuses on variations from its standard
flavour. Many popular flavour provided by the Red Bull are Cranberry, Coconut, Blueberry,
Kiwi and many others (AYGÜN and ATABEK, 2019).
Levitt's model
It is a model based on the idea of a product and it is used by Lucozade and Red Bull
organisation for its products generation so that there product will seems out to be the best and
helps in gaining maximum products. The Levitt's model suggested that every level contains the
previous level as well.
 Core benefit is the inner most level which states that for every product identification and
customer satisfaction, it core functioning is majorly required to reach at the next level.
 The first level is the basic product which has only characteristics that are needed for the
product.
 Expected product is the second level in which characteristics of implementing the product
and attributes are there.
 Augmented product is the third level which helps in enabling the expectations of the
consumers from the products
 And the last level, is the potential product which includes all the perfect characteristics
from which the desire product will be made (Brennan, Canning and McDowell, 2020).
3. Price
The pricing strategy of Red bull is premium because of their target market and high range
of products. The premium pricing strategy states that Red bull is one of the best selling energy
products. In Comparison to this, Lucozade also uses premium pricing strategy because it
generally helps the brand to build a high quality image in the market. This pricing strategy of
Lucozade is suggested out to be the disadvantage for the company when the market suffered
from global recessions and consumers want cheaper products at that time.
3

4. Place ( Distribution)
This component of marketing mix suggested that consumers can easily get the product
from there comfortable place. In many countries such as Germany, South America, France are
the places where Lucozade energy drinks are available in bulk and mainly popular amongst the
youth.
In comparison to Red bull, there are stores available in more than 171 metropolitan cities
across the world. The company has successfully managed to sell over more than 61 million
dollars in 2019. As a brand, Red bull is easily approached to any super market, stores, nightclubs
and groceries. Also, red bull offer there refrigerators which hold more than 40 cans together and
it is easily accessible to any stores and restaurants.
5. Promotion
It refer as the most significant and crucial approach of the marketing mix. It has been
states that promotion is a major component in the marketing mix framework because it increase
the value of a product in the market. In relation with Red Bull, the organisation initiate in various
campaigns and awareness of their products. It has one of the famous tag line that “Red bull gives
you wings” to promote their products and services. Some events in which Red Bull promoted
there product includes BMX, mountain biking, Red bull Cape fear and many others. The
organisation even has celebrities and sports campaign as a brand ambassador.
In comparison to this, the Lucozade has a strategy of selling services in the market. They
mainly prefer to promote their brands in the social sites mainly prefer social sites such as
Facebook, Instagram and many others. The use of famous personalities for endorsements has
also been quite effective way which is used by Lucozade.
Conclusion
From the discussion, it has been concluded that the organisations uses some tactics and
sort of actions for the brands and products promotion. The report also includes comparison
analysis in terms of marketing mix framework, namely Lucozade and Red Bull. The theory of
marketing mix helps directly to achieve growth and success by clearly analysing the target
audience.
4

References
Books and Journal
HR, G. and Aithal, P.S., 2020. Rational Distribution Channel Mix for Lifestyle Brands in India–
An Empirical Study. International Journal of Case Studies in Business, IT, and
Education (IJCSBE), 4(1), pp.136-154.
Kurnianto, A.M., Syah, Pusaka, S. and Ramdhani, D., 2019. Marketing Strategy on the Project
Planning of Retail Business for Garage Shop. International Journal of Multicultural and
Multireligious Understanding, 6(1), pp.217-228.
Brennan, R., Canning, L. and McDowell, R., 2020. Business-to-business marketing. SAGE
Publications Limited.
AYGÜN, C. and ATABEK, H.Ç., 2019. Acute Effects of Red Bull Energy Drink on Counter
Movement Jump and Repeated Sprint Performances in Healthy Young Men. Journal of
Athletic Performance and Nutrition, 6(1), pp.1-11.
KULAK and et. al., 2019. Energy drink consumption among pre-clinical medical students
attending a public medical school in Istanbul, Turkey. Marmara Medical Journal, 32(2).
Rawle’s, G., 2019. 6 I’m Every Wo/man, Guaranteed One Hundred Per Cent Genuine!. Collage
in Twenty-First-Century Literature in English: Art of Crisis.
Davies, A., MacAulay, S.C. and Brady, T., 2019. Delivery model innovation: Insights from
infrastructure projects.
5